March 9, 2018
The Honorable Diana DeGette
United States House of Representatives
2111 Rayburn House Office Building
Washington, DC 20515
The Honorable Jared Polis
United States House of Representatives
1727 Longworth House Office Building
Washington, DC 20515
The Honorable Scott Tipton
United States House of Representatives
218 Cannon House Office Building
Washington, DC 20515
The Honorable Ken Buck
United States House of Representatives
1130 Longworth House Office Building
Washington, DC 20515
The Honorable Doug Lamborn
United States House of Representatives
2402 Rayburn House Office Building
Washington, DC 20515
The Honorable Mike Coffman
United States House of Representatives
2443 Rayburn House Office Building
Washington, DC 20515
The Honorable Ed Perlmutter
United States House of Representatives
1410 Longworth House Office Building
Washington, DC 20515
Dear Representatives DeGette, Polis, Tipton, Buck, Lamborn, Coffman and Perlmutter:
On behalf of the University of Colorado, we write to discuss our concerns with provisions included in H.R. 4508, the Promoting Real Opportunity, Success, and Prosperity through Education Reform (PROSPER) Act, which will erode essential federal support for students in Colorado and make college more expensive for millions of students and families across the United States.
The University of Colorado (CU) is a public research university with multiple campuses serving Colorado, the nation, and the world through high-quality education, research, public service and healthcare delivery. As Colorado's flagship university and one of its largest employers, CU contributes $12.5 billion in economic impact annually. Our four campuses enroll more than 72,000 students, employ some 34,000 individuals, attract over $1 billion in sponsored research annually, and have a combined total of more than 200,000 alumni in Colorado and 450,000 around the world.
We recognize that many compelling issues compete for lawmaker’s consideration and we value Congress’ attention to issues of student access and affordability in higher education. Providing a high quality education at a responsible cost for students is CU’s highest priority. We are pleased that the PROSPER Act adopts many recommendations from the Task Force on Federal Regulation of Higher Education, which CU President Bruce Benson served on at the request of Senator Michael Bennet, and which reflects CU input and priorities. In general, we appreciate any policies that reduce administrative burden and student cost and promote institutional innovation and flexibility.
As you know, the Higher Education Act is the most important piece of legislation overseeing the relationship between the federal government and higher education. The law, which most notably governs the federal financial aid system, expired in 2015 and has since been operating without statutory direction. We are pleased to see Congress’ interest in renewing the law, but are also deeply concerned by both the process and substance of the House’s current reauthorization effort. The PROSPER Act passed out of the House Education & the Workforce Committee without significant input from the higher education community and does not reflect our priorities. We are discouraged to see the legislation pare back essential federal support for international education programs, eliminate Teacher Quality Partnership competitive grants, and reduce funding for TRIO programs, which prepare low-income and first-generation students for college. The PROSPER Act includes these and many other reforms that will impact public universities like CU. In the remainder of this letter, we’d like to focus our comments on specific provisions in the legislation that will make higher education more expensive and less accessible for Colorado students and their families.
We believe that colleges and universities have a responsibility to ensure college remains accessible and affordable, which is why CU invested over $184 million in institutional aid for students across our four campuses last year. In fact, over the last five years CU institutional aid has far eclipsed federal grant aid, which totaled $66 million in 2017. Likewise, our campuses are piloting innovative programs, such as the CU Boulder Pact, which offers a four-year tuition guarantee and will eliminate all course and program fees, saving students over $8 million next academic year. All of our campuses are committed to ensuring that Colorado students graduate on time and with as little debt as possible.
While we support provisions in the legislation to create a Pell Grant bonus, simplify the federal student aid application process and eliminate loan origination fees, these improvements are far diminished by other proposals that would reduce federal student aid overall. The Congressional Budget Office estimated that the PROSPER Act would shrink essential federal support for students by $14.6 billion over the next decade. We are particularly alarmed by the proposed termination of Federal Supplemental Educational Opportunity Grants; GRAD PLUS loans; Public Service Loan Forgiveness; the in-school interest subsidy for undergraduate student loans; and access to Federal Work Study for our graduate and professional students.
Federal Supplemental Educational Opportunity Grants
More than 1.6 million low-income students nationwide, and nearly 1,500 at CU, benefit from Federal Supplemental Educational Opportunity (FSEOG) grants. FSEOG is a partnership between the federal government and universities, which must contribute matching funds. This “skin-in-the-game” requirement maximizes federal investment in the neediest students. In addition, because university financial aid offices administer FSEOG, there is greater precision in awarding grants to students with the greatest financial need. We strongly disagree with the characterization that FSEOG is duplicative of the Pell Grant program. Even if Congress reinvested FSEOG funds in Pell, there would be less aid overall and it could not be targeted to the students with the most exceptional need. Eliminating FSEOG would reduce more than $1.6 million in need-based federal grant aid to CU’s neediest students each year.
Subsidized Loans
The proposed termination of the in-school interest subsidy on undergraduate student loans is also deeply concerning. Last year, 6.1 million students nationwide, and more than 15,000 CU students, borrowed under the Stafford Subsidized Loan program. These loans are only available to undergraduates with financial need. Under the program, the government pays interest accrued on the loan while a student is enrolled in school. The American Council on Education projects that eliminating the in-school interest subsidy would cause students’ borrowing costs to increase dramatically. They estimate that borrowers in school for four-years with an average debt load would pay 45 percent more interest over a ten-year repayment period. Students who continue on for two years of graduate study would see their interest costs balloon by 87 percent.
Graduate PLUS Loans
We are likewise concerned that the PROSPER Act pares back essential federal support for graduate and professional students by terminating their access to Graduate PLUS loans, which offer many benefits compared to the private loan market. PLUS loans allow graduate students (and their parents) to borrow up to the full cost of attendance; offer fixed interest rates set by Congress; and provide access to income-driven repayment plans. Eliminating PLUS loans would force nearly 3,000 CU graduate students with greater education costs, including our medical, law and non-resident students, into the private market to fill unmet need. Nationwide, 47 percent of medical students rely on Grad PLUS to cover the full cost of attendance at medical school. We are greatly concerned that this change would disproportionately harm first-generation and low-income students who are less likely to find favorable terms or interest rates with private lenders. In addition, we are deeply alarmed at the continued erosion of federal support for our graduate and professional students at a time when advanced degrees are increasingly in demand to meet workforce needs.
Federal Work Study
CU also opposes eliminating Federal Work Study (FWS) eligibility for graduate students. The FWS program enables nearly 1,900 graduate students with demonstrated financial need to work on CU campuses – often in areas relevant to their degree – and earn money to help with their education expenses. The benefits of work study not only accrue directly to student employees, but also help the University stretch limited resources and offer better services to the entire CU community.
Public Service Loan Forgiveness
We also want to express our concern about the proposed repeal of the Public Service Loan Forgiveness (PSLF) program, which is a critical tool for attracting and retaining professionals in areas of national need, including in medicine, law and teaching. PSLF, which was created by President George W. Bush, allows borrowers who work in public service jobs and make on-time loan payments to have their student debt forgiven after 10 years. Almost 600,000 borrowers have enrolled in PSLF nationwide. Instead of outright elimination, we encourage lawmakers to consider other reforms to PSLF, such as a cap on total forgiveness, which would both discourage over-borrowing and incentivize careers in public service that benefit communities across Colorado and the nation.
As we’ve shown here, many of the proposals in the PROSPER Act would roll back essential student aid for undergraduate students with the greatest financial need as well as graduate and professional students, who already receive limited federal support. As you and your House colleagues consider H.R. 4508, we encourage you to put the needs of students first and would welcome the opportunity to work with you to accomplish this.
Sincerely,
Bruce D. Benson, President
University of Colorado
Philip DiStefano, Chancellor
University of Colorado Boulder
Venkat Reddy, Chancellor
University of Colorado Colorado Springs
Dorothy Horrell, Chancellor
University of Colorado Denver
Donald Elliman, Chancellor
University of Colorado Anschutz Medical Campus